PARTNERSHIP AGREEMENT

This PARTNERSHIP AGREEMENT is made on the _____ day of ____________, 20__

between
_________________________________________________, whose address is
_________________________________________________ and
_________________________________________________, whose address is
_________________________________________________.
NAME AND BUSINESS.
The parties hereby form a partnership under the name of ___________________
to conduct the business of
_________________________________________________.
The principal office of the business shall be at
_________________________________________________.
TERM.
The partnership shall begin on the _____ day of ____________, 20__, and shall
continue until terminated as herein provided.
CAPITAL.
The capital of the partnership shall be contributed in cash by the partners as
follows:
A separate capital account shall be maintained for each partner. Neither partner
shall withdraw any part of his capital account. Upon the demand of either partner,
the capital accounts of the partners shall be maintained at all times in the
proportions in which the partners share in the profits and losses of the
partnership.
PROFIT AND LOSS.
The net profits of the partnership shall be divided equally between the partners
and the net losses shall be borne equally by them. A separate income account
shall be maintained for each partner. Partnership profits and losses shall be
charged or credited to the separate income account of each partner. If a partner
has no credit balance in his income account, losses shall be charged to his capital
account.
SALARIES AND DRAWINGS.
Neither partner shall receive any salary for services rendered to the partnership.
Each partner may, from time to time, withdraw the credit balance in his income
account.
INTEREST.
No interest shall be paid on the initial contributions to the capital of the
partnership or on any subsequent contributions of capital.
MANAGEMENT DUTIES AND RESTRICTIONS.
The partners shall have equal rights in the management of the partnership
business, and each partner shall devote his entire time to the conduct of the
business. Without the consent of the other partner neither partner shall on behalf
of the partnership borrow or lend money, or make, deliver, or accept any
commercial paper, or execute any mortgage, security agreement, bond, or lease,
or purchase or contract to purchase, or sell or contract to sell any property for or
of the partnership other than the type of property bought and sold in the regular
course of its business.
BANKING.
All funds of the partnership shall be deposited in its name in such checking
account or accounts as shall be designated by the partners. All withdrawals
therefrom are to be made upon checks signed by either partner.
BOOKS.
The partnership books shall be maintained at the principal office of the
partnership, and each partner shall at all times have access thereto. The books
shall be kept on a fiscal year basis, commencing on the _____ day of
____________ and ending on the _____ day of ____________, and shall be closed
and balanced at the end of each fiscal year. An audit shall be made as of the
closing date.
VOLUNTARY TERMINATION.
The partnership may be dissolved at any time by agreement of the partners, in
which event the partners shall proceed with reasonable promptness to liquidate
the business of the partnership. The partnership name shall be sold with the other
assets of the business. The assets of the partnership business shall be used and
distributed in the following order:
(a) to pay or provide for the payment of all partnership liabilities and liquidating
expenses and obligations;
(b) to equalize the income accounts of the partners;
(c) to discharge the balance of the income accounts of the partners;
(d) to equalize the capital accounts of the partners; and
(e) to discharge the balance of the capital accounts of the partners.
DEATH.
Upon the death of either partner, the surviving partner shall have the right either
to purchase the interest of the decedent in the partnership or to terminate and
liquidate the partnership business. If the surviving partner elects to purchase the
decedent's interest, he shall serve notice in writing of such election, within three
months after the death of the decedent, upon the executor or administrator of
the decedent, or, if at the time of such election no legal representative has been
appointed, upon any one of the known legal heirs of the decedent at the last-
known address of such heir.
If the surviving partner elects to purchase the interest of the decedent in the
partnership, the purchase price shall be equal to the decedent's capital account as
at the date of his death plus the decedent's income account as at the end of the
prior fiscal year, increased by his share of partnership profits or decreased by his
share of partnership losses for the period from the beginning of the fiscal year in
which his death occurred until the end of the calendar month in which his death
occurred, and decreased by withdrawals charged to his income account during
such period. No allowance shall be made for goodwill, trade name, patents, or
other intangible assets, except as those assets have been reflected on the
partnership books immediately prior to the decedent's death; but the survivor
shall nevertheless be entitled to use the trade name of the partnership.
Except as herein otherwise stated, the procedure as to liquidation and distribution
of the assets of the partnership business shall be the same as stated in the section
regarding VOLUNTARY TERMINATION.
ARBITRATION.
Any controversy or claim arising out of or relating to this Agreement, or the
breach hereof, shall be settled by arbitration in accordance with the rules, then
obtaining, of the American Arbitration Association, and judgment upon the award
rendered may be entered in any court having jurisdiction thereof.
In witness whereof the parties have signed this Agreement.
Executed this _____ day of ____________, 20__.
_________________________________
Signature
_________________________________
Signature